The federal government raised petroleum costs on Saturday for the next fortnight. Petrol now costs Rs252.1 per litre, while high-speed diesel (HSD) is priced at Rs258.43 per litre.
Petrol prices increased by Rs3.72 per litre, and HSD saw a Rs3.29 per litre hike. These adjustments come despite hopes that prices would remain stable due to minor changes in international rates.
Kerosene and Light Diesel Prices Drop
In contrast, kerosene oil and light diesel oil (LDO) prices were reduced. Kerosene now costs Rs164.98 per litre after a Rs0.62 cut, and LDO costs Rs151.73 per litre following a Rs0.48 decrease.
The Finance Division explained the changes. It said the Oil and Gas Regulatory Authority (Ogra) calculated the prices based on international oil market trends and currency exchange rates.
International Market Impact
Sources revealed a slight increase in global petrol and HSD prices over the last fortnight. Import premiums remained unchanged. A slight improvement in the rupee’s value also influenced the price adjustments.
Petrol is primarily used in private vehicles, motorbikes, and rickshaws. This hike impacts the middle- and lower-middle-class families the most, tightening their budgets.
Diesel Price Fuels Inflation
HSD powers heavy vehicles, trains, and agricultural equipment like tractors and tube wells. Its price hike often increases the cost of vegetables and other essential goods, directly fueling inflation.
The government is charging approximately Rs76 in taxes per litre of petrol and diesel. While general sales tax remains zero, a Rs60 per litre petroleum development levy and Rs16 customs duty are applied. Distribution and sales margins add another Rs17 per litre, benefiting oil companies and dealers.
Luxury Vehicles Face Higher Charges
High-octane blending components and 95RON petrol, used in luxury vehicles, face a Rs50 per litre levy. These fuels are mostly consumed by wealthier segments of society.
The price hike is expected to draw criticism from the public and opposition. Rising fuel costs often lead to protests due to their widespread impact on daily life and economic activities.
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